States Not Ready For Petrol & Diesel Under GST

The union finance minister has clearly stated that the states are not in the favour of including petrol and diesel in the GST ambit due for some unknown reasons.

The finance ministry has stated that most of the states from across the nation have said to not include the petrol and diesel in the GST scheme. The union finance minister Arun Jaitley himself commented on this topic and also mentioned that may be in near future they may make there way into the GST.

The minister also added that natural gas and real estate possess legible points which directs it to be included into the GST ambit while he was oppressing the fact that the petrol and diesel will be tried to bring it under the GST. Although he has indicated that the GST might be higher on the petrol and diesel but still assured that the overall effect will lower down the prices across the country.

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As of now, the petrol and diesel are out of the GST ambit and is wholly under the state government for the tax levy purpose. Mr Arun Jaitley said that “So far the mood of states (most of the states) is not in favour of including it (in GST) at the moment. But I am sure as the GST experience moves on, I think, natural gas, real estate — these are areas which are to be brought in and then probably at some stage we will keep trying for petrol, diesel.”

Right now there are five petroleum products which do not make it to the GST inclusion as they are being considered as the revenue generators for both the centre and state government in various aspects. Still, there are some issues which relate to the input tax credit and compliances which makes them vulnerable to the GST.

Currently, the eway bill is under discussion which is to be rolled out once after the trial period comes to an end. Government is also setting 3.3 percent fiscal deficit target for GDP in the year 2018 – 19 as of now in front of the 3.5 percent this ongoing fiscal.